Benchmark BSE Sensex rose by 85 points on Monday following gains in auto, IT, energy and FMCG stocks amid a firm trend in European markets.
In a largely range-bound session, the 30-share index ended 85.88 points or 0.14 per cent higher at 61,308.91. Similarly, the NSE Nifty advanced 52.35 points or 0.29 per cent to 18,308.10.
Ultratech Cement was the top gainer in the Sensex pack, surging nearly 3 per cent, followed by M&M, Maruti, Tata Steel, TCS, L&T, SBI and HUL.
On the other hand, HCL Tech, HDFC Bank, Axis Bank, Tech Mahindra, PowerGrid, and Sun Pharma were among the laggards, falling up to 5.89 per cent.
Indian markets opened marginally positive tracking mixed Asian market peers as data showed Chinese economy grew at 8.1 per cent in 2021, marginally lower than expectations of 8.4 per cent.
"During the afternoon session, markets showed some strength and traded in positive territory as traders were getting relief, as foreign portfolio investors (FPIs) reversed the three-month selling streak in January by investing a net Rs 3,117 crore in Indian markets. However, the gains were capped during the day due to subdued performance by financials, IT and healthcare, Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said.
Elsewhere in Asia, bourses in Shanghai and Tokyo ended up, while Hong Kong and Seoul closed in the red. Stock exchanges in Europe were trading with gains in mid-session deals.
Meanwhile, international oil benchmark Brent crude slipped 0.26 per cent to USD 85.84 per barrel.
Foreign institutional investors (FIIs) were net sellers in the capital market, as they sold shares worth Rs 1,598.20 crore on Friday, according to stock exchange data.
Rupee Slips 9 Paise To Close At 74.24 Against US Dollar
Declining for the second straight session, the rupee on Monday fell 9 paise to close at 74.24 (provisional) against the US dollar as muted domestic equities and elevated crude oil prices weighed on investor sentiments.
At the interbank foreign exchange market, the local currency opened at 74.18 against the American currency and witnessed an intra-day high of 74.16 and a low of 74.36 during the session.
The rupee finally settled at 74.24, down 9 paise over its previous close of 74.15 against the greenback.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.05 per cent down at 95.11.
"Weaker economic data, higher bond yields, a surge in crude oil prices and state-run banks dollar buying on behalf of importers weighed on rupee for the second day in trot," said Dilip Parmar, Research Analyst, HDFC Securities.
Global forex markets remain calm as the US market remained closed on Monday on account of Martin Luther King Day.
Gold Rallies Rs 176 On Global Cues
Gold prices rose by Rs 176 to Rs 47,881 per 10 grams in the national capital on Monday in line with gains in the precious metal in the global markets and a weaker rupee, according to HDFC Securities.
In the previous trade, the precious metal had settled at Rs 47,705 per 10 grams.
Silver prices, however, declined by Rs 505 to Rs 61,005 per kg from Rs 61,510 per kg in the previous trade.
The rupee dipped by 9 paise to close at 74.24 (provisional) against the US dollar on Monday.
In the international market, gold was trading with gains at USD 1,822 per ounce and silver was flat at USD 23.03 per ounce.
"Gold prices traded firm with spot gold prices at COMEX trading 0.30 per cent up at USD 1,822 per ounce on Monday," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.